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Special Charges

3 Months Ended

Feb. 04, 2012

Note 6 – Special Charges

The Company monitors global macroeconomic conditions, on an ongoing basis, and continues to assess opportunities for improved operational effectiveness and efficiency and better alignment of expenses with revenues. As a result of these assessments, the Company has undertaken various restructuring actions over the past several years. These actions are described below.

The following table displays the special charges taken for ongoing actions and a roll-forward from October 29, 2011 to February 4, 2012 of the employee separation and exit cost accruals established related to these actions.


	Reduction of Operating Costs
Statement of Income	2008		2009		2010		2011		2012
Workforce reductions	$	1,627	$	26,583	$	10,908	$	2,239	$	2,535
Facility closure costs		—		2,411		—		—		—
Non-cash impairment charge		—		839		487		—		—
Other items		—		500		24		—		60

Total Charges	$	1,627	$	30,333	$	11,419	$	2,239	$	2,595


Accrued Restructuring	Reduction of Operating Costs
Balance at October 29, 2011	$	3,876
Fiscal 2012 special charges		2,595
Severance payments		(1,359	)

Balance at February 4, 2012	$	5,112

Reduction of Operating Costs

During fiscal 2008 through fiscal 2010, the Company recorded special charges of approximately $43.3 million. These special charges included: $39.1 million for severance and fringe benefit costs in accordance with its ongoing benefit plan or statutory requirements at foreign locations for 245 manufacturing employees and 470 engineering and selling, marketing, general and administrative (SMG&A) employees; $2.1 million for lease obligation costs for facilities that the Company ceased using during the first quarter of fiscal 2009; $0.8 million for the write-off of property, plant and equipment; $0.5 million for contract termination costs and $0.3 million for clean-up and closure costs that were expensed as incurred; and $0.5 million related to the impairment of intellectual property. The Company terminated the employment of all employees associated with these actions and is paying amounts owed to them as income continuance.

During fiscal 2011, the Company recorded a special charge of approximately $2.2 million for severance and fringe benefit costs in accordance with its ongoing benefit plan or statutory requirements at foreign locations for 25 engineering and SMG&A employees. As of February 4, 2012, the Company employed 6 of the 25 employees included in this cost reduction action. These employees must continue to be employed by the Company until their employment is involuntarily terminated in order to receive the severance benefit.

During the first quarter of fiscal 2012, the Company recorded a special charge of approximately $2.6 million. The special charge included $2.5 million for severance and fringe benefit costs in accordance with its ongoing benefit plan or statutory requirements at foreign locations for 34 manufacturing, engineering and SMG&A employees and $0.1 million for contract termination costs. As of February 4, 2012, the Company employed 25 of the 34 employees included in this cost reduction action. These employees must continue to be employed by the Company until their employment is involuntarily terminated in order to receive the severance benefit.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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